Latest! Songsheng Co., Ltd.’s semi-annual report has been officially released—what key changes does it reveal?

Latest data! In the first half of the year, Songsheng Co., Ltd. maintained stable revenue and profits, with net profit attributable to shareholders turning from loss to gain.

The LED power supply business continues to grow steadily, while the energy storage segment is rapidly scaling up—what’s Songsheng’s next move?

Recently, Songsheng Co., Ltd. released its 2026 semi-annual report. In the first half of the year, the company reported revenue of RMB 587 million, up 30.65% year over year; net profit attributable to shareholders reached RMB 37.82 million, marking a turnaround from loss to profit; and the overall gross margin stood at 25.55%, an increase of 3.13 percentage points compared to the same period last year.

Looking at the core businesses, LED driver power supply revenue totaled RMB 471 million, up 14.83% year over year, with sales volume reaching 7.8656 million units, a 36.67% increase. The gross margin for this segment was 25.73%, up 2.14 percentage points year over year. Notably, high-power driver revenue reached RMB 425 million, up 18.98% year over year, with domestic sales accounting for RMB 405 million, a 18.71% rise. Capacity utilization climbed to 85.36%, an improvement of 18.65 percentage points year over year, underscoring the continued emergence of economies of scale.

Even more noteworthy is the energy storage core components business: revenue for the first half of the year hit RMB 109 million, up 250.21% year over year, with sales volume of 41,457 units, a 136.09% increase. Capacity utilization stood at 89.33%, a 47.25-percentage-point jump compared to the same period last year. Although this segment remains in the red, with a net loss of RMB 10.329 million, the loss has narrowed by 45.17% year over year, signaling accelerating commercialization.

In terms of mergers and acquisitions, Songsheng has partnered with Xinshen Technology to build a comprehensive product portfolio spanning both drive and control solutions, offering one-stop lighting solutions for road lighting, industrial lighting, campus lighting, and other applications.

Financially, the company also demonstrated solid performance. Following the mandatory redemption of its convertible bonds, outstanding bond liabilities decreased by RMB 265 million, driving a 40.72% drop in overall financial expenses. Operating expenses likewise fell by 4.91%, leading to a marked improvement in the company’s financial structure. Meanwhile, overseas sales reached RMB 104 million, up 27.81% year over year, accounting for 17.64% of total revenue, highlighting the growing success of Songsheng’s international expansion efforts.

According to Lao Hong, the most significant takeaway from Songsheng’s latest semi-annual report isn’t just the revenue growth, but rather the recovery of profitability and the optimization of its business mix. The steady gross margin and rising capacity utilization in the LED power supply segment indicate that economies of scale are beginning to materialize. Meanwhile, although the energy storage business is still operating at a loss, its revenue has already surpassed RMB 100 million, and losses have narrowed substantially, suggesting that this new growth area is gradually getting on track.

Beyond these developments, Lao Hong notes that following the mandatory redemption of convertible bonds, financial expenses have dropped by more than 40%, reflecting improved financial management. With the LED power supply business firmly anchoring the company’s core operations, the rapid scaling of the energy storage segment, and ongoing improvements in its financial structure, Songsheng is transitioning from single‑track to multi‑track growth. Moving forward, key areas of focus will be when the energy storage business can achieve break-even and whether the synergies resulting from the acquisition of Xinshen Technology will materialize as expected.

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About the author, Hong Bing:

Hong Bing currently serves as the Editor-in-Chief of China Light Network and Agricultural Lighting Network—the official websites of the China Illuminating Electrical Appliances Association—as well as Executive Dean of Ming Classroom. He also holds positions as Deputy Director of the Talent Training Committee of the China Illuminating Electrical Appliances Association, Secretary-General of the Agricultural Lighting Professional Committee of the same association, Secretary-General of the Lighting Alumni Association under Fudan University, and a board member of the Ecological Environment Alumni Association at CEIBS. He graduated from the Department of Light Sources and Lighting Engineering at Fudan University in 1991 and earned an MBA from CEIBS in 2003. Over the years, he has worked in R&D, product planning, and marketing at institutions including the China Building Materials Academy, Panasonic, GE, and OSRAM. In 2008, he received Siemens’ Global Top Plus Award and Siemens China’s Outstanding Performance Award, and in 2009 founded China Light Network.

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